Kochi: Ernakulam rural police have intensified investigation into a suspected counterfeit currency network after recovering three mobile phones from a 62-year-old man who was arrested for circulating fake notes. The accused, identified as Abdul Rasheed of Pathanapuram in Kollam, was taken into custody by Kuruppampadi police on Thursday.Officers said the phones were also examined by anti-terrorism squad (ATS) attached to national investigation agency (NIA) for detailed inspection. Police have also sought custody of the accused for further interrogation based on leads emerging from the phone data. However, the seized notes were of low quality, indicating that a larger network is unlikely to be part of the operation.According to police, Rasheed attempted to use a fake Rs 500 note at a stationery shop in Payyal Junction late on Wednesday. He purchased items worth Rs 90 and received Rs 410 in change. The shopowner, suspecting foul play, alerted police after confirming that the note was counterfeit.During the arrest, police seized 23 fake Rs 500 notes and Rs 12,000 in genuine currency from the accused. Preliminary examination revealed that notes were of poor quality, with multiple notes carrying the same serial number.Police sources said Rasheed is a habitual offender with at least eight cases registered against him across Kerala — including in Kochi, Manjeri, Chadayamangalam and Kundara — all related to counterfeit currency. He was earlier arrested by Nattukal police in Palakkad, who recovered a printer and computer equipment suspected to be used for printing fake notes.Rasheed told police that he obtained fake currency from a contact in Coimbatore by exchanging Rs 10,000 in genuine notes for Rs 30,000 in counterfeits. However, police suspect that he may have printed the seized notes himself.Police said Rasheed typically targeted small shops during late hours, using fake notes for low-value purchases. He was released from judicial custody just three weeks ago and is believed to be moving across districts in a car. Police are also inspecting if he operated from any locations within Ernakulam district.